US stocks start July with gains - 4.7.2017

S&P 500 and Dow advance while Nasdaq slips

US stocks closed higher on Monday in an abbreviated session ahead of the Fourth of July holiday lead by gains in energy and financial stocks. The dollar rebounded after previous week’s losses: the live dollar index data show the ICE US Dollar index, a measure of the dollar’s strength against a basket of six rival currencies, gained 0.56% to 96.194. S&P 500 added 0.2% settling at 2429.02 led by 2% gain in energy shares which outweighed 0.9% loss in technology stocks. The Dow Jones industrial average rose 0.6% to 21479.27, lifted by Goldman Sachs and JP Morgan shares, up 2.4% and 2.04% respectively. The Nasdaq composite index lost 0.5% closing at 6110.06.

European stocks pressured by stronger euro

European stock indices finished higher on Monday led by commodity shares after positive manufacturing data from China. Both the euro and British Pound ended lower against the dollar. The Stoxx Europe 600 index rose 1.1%. The DAX 30 closed 1.2% higher at 12475.31. France’s CAC 40 outperformed gaining 1.5% and UK’s FTSE 100 added 0.9% to 7377.09. European stocks opened 0.4% - 0.5% lower today.

Commodity shares advanced after a private gauge of China’s manufacturing activity, rebounded in June. Caixin manufacturing PMI indicated an expansion in manufacturing sector, a major user of natural resources. Euro remained subdued even after euro-zone Manufacturing PMI final reading for June was upgraded to 74-month high. Pound traded lower after the June Manufacturing PMI slid to a three-month low at 54.3 in June. Bank stocks gained on expectations of higher interest rates sooner than previously believed after hawkish comments by ECB chief Draghi and Bank of England governor Carney last week.

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Asian stocks fall as North Korea test fires missile

Asian stock indices are mostly lower today as a missile launch by North Korea undermined market confidence. Nikkei closed 0.1% lower at 20032.35 as yen strengthened against the dollar on heightened haven demand on news North Korea test-launched an intermediate-range ballistic missile into the sea off Japan’s east coast. Chinese stocks are lower: the Shanghai Composite Index is down 0.4%, while Hong Kong’s Hang Seng Index is 1.4% lower. Australia’s All Ordinaries Index is up 1.6% as Australian dollar accelerated the slide against the greenback as Australia's central bank left interest rates unchanged at 1.5% and signaled a neutral policy stance despite recent economic improvement.

Oil down on lower US production data

Oil futures prices are edging lower today snapping eight session winning streak spurred by data showing a decline in US oil output and drilling activity. Trading is expected to be thin today with many US traders on holiday celebrating independence day. September Brent crude gained 1.9% settling at $49.68 a barrel on London’s ICE Futures exchange on Monday.